JANAKKUMAR SOMCHAND THAKKAR,PATDI vs. INCOME TAX OFFICER, SURENDRANAGAR,GUJARAT

आदेश / O R D E R

PER DINESH MOHAN SINHA JM;

Hon'ble CIT(A) did not consider the details and evidences mentioned in Form 35, which were explaining the nature of case deposits in assessee's bank. The books of accounts were duly maintained, and sales proceeds of Rs.54,13,257 received from retail business and its deposit in bank were duly recorded. The cash transactions and cash deposits of the business were fully recorded by the assessee in his books of accounts, but the same were never demanded during the course of assessment. The ledger accounts of parties were also duly maintained. Thus, provisions of section 69A and underlying conditions do not apply. As per assessee's Computation of Income, the income was calculated as per section 44AD, for which no books of accounts are required to be kept. The CIT(A) has also ignored the fact that the assessment was done based on assumptions without following natural principles of justice.

“The assessee has not filed any Return of Income for the Asst. Year 2018-19. Hence, declaring the above financial transactions remained unexplained and unverified. Therefore the Jurisdictional Assessing Officer has reopened the case u/s 147 of the IT Act and accordingly a notice u/s 148 of the Income Tax Act, 1961 was also issued to the assessee on 31.03.2022. As per the information available in the departmental database it is seen that, the assessee, Shri. Janakkumar Somchand Thakkar has made cash deposit of Rs. 54,13,257/- in his bank account maintained with M/s. The Patdi Nagarik Sahakari Bank Limited during the financial year 2017-18, relevant to the assessment year 2018-19. In the absence of Return of Income, the source of cash deposit of Rs. 54,13,257/- remained undisclosed and therefore, remains unexplained and same has not been offered for tax and due tax has not been paid.The assessee was issued with a show cause notice u/s.148A (b) of the Income Tax Act, 1961 dated 15.03.2022. There was no compliance from the assessee to the said show cause notice. Hence, an order u/s.148A (d) of the Income Tax Act, 1961 was passed on 31.03.2022 and a notice u/s.148 of the Income Tax Act, 1961 was also issued to the assessee on 31/03/2022 by Jurisdictional Assessing Officer.It is seen from the Page | 2 computation submitted by the assessee that he had arrived a gross receipt of Rs.44,89,000/- and arrived 8% of profit of Rs.3,59,120/- as total income (estimated income) u/s.44AD of the Income Tax Act. He had not mention anything about his nature of business and how he is coming under the purview of 44AD of the Income Tax Act, it is not clear from any of the replies filed by the assessee.As discussed above, the assessment is completed by making the total addition of Rs. 54,13,257/- to the income of the assessee. As the assessee has not filed return of income in response to notice u/s 148 of the IT Act, hence the assessment is completed u/s 147 r.w.s 144 r.w.s 144B of the IT Act.”